Category: Major Donor Fundraising

Today’s topic is a complex subject. But I’ve done the work to be able to talk about it in a succinct manner.

The topic? Using offers to increase major donor giving.

Three main ideas for you…

Offers for Major Donors: Under-Utilized, but Very Effective

Presenting a major donor with a specific thing that their gift will do for a specific amount of money is a very powerful tactic.

But in my experience, too many nonprofits stop using specific offers when their donors move up and into major donor status. All of the asks move into the generic “support our mission” approach.

Do not remove specific offers from the toolbox you use to cultivate and upgrade your current major donors.

One of the main reasons our major donor consulting practice is thriving is because we help organizations develop specific offers for their majors. Those offers usually result in higher giving and higher retention rates.

There are Two Main Ways to Create Offers for Majors

The first way: use the same offer you use for your mass donor, but in greater quantities.

Instead of “$50 provides supplemental math training to a student for a week,” say “$1,500 provides supplemental math training for an entire classroom for one week” or “$4,500 provides supplemental math training for all the 3rd grade classes at a school for one week.”

All you’re doing here is using large multiples of a smaller offer. But (and this is important) you are grouping those multiples into the right-sized groupings for major donors.

The second way: create custom offers for major donors.

This is often done by reviewing program budgets to find line items at an amount a specific donor might give. For instance, say you’re a community Arts organization and your rent for the year is $20,000. You could say the following to a donor:

“Your gift of $20,000 will provide a headquarters for our organization for an entire year. You’ll make it possible for the entire team to have a place to work together, to meet, and to work to preserve the local Arts and artists that you care about so much.”

Note: this raises an issue of designated vs. un-designated giving, which is not the subject of this post. In my experience, organizations that are set up to raise both kinds of giving tend to have the most success.

A “Donor-Shaped Hole”

I’ve shared the concept of how all of your fundraising pieces should have a “donor-shaped hole” in them: an obvious role for your donor to play in an appeal, at an event, in your organization.

The trick with major donors is to create the right-sized hole for each donor, while not ignoring the fact that some of your majors would like to accomplish specific things with their gift.

That’s the reason offers work for major donors, too. An offer shares a specific need that allows a major donor to support your organization, your beneficiaries or cause, AND feel like they’ve accomplished something specific. For some donors, that’s a powerful combination.

Too many organizations’ major donor fundraising comes down to communicating, “You can give a lot of money, please support us.”

That’s just not as powerful an offer as, “Here’s something powerful and specific that needs to be done to help, will you do this?”

It usually takes more work to create and refine offers for major donors. But it’s worth it.

Ok. Not bad for doing nothing. And a lot of charities skate along like that, seeing that $350,000 as a kind of random windfall. They’re happy with it. They’d be a little less happy if they thought about the opportunity cost they’re paying for doing nothing!

Here’s what it looks like for an organization that has a not-terribly-effective bequest program. They’re consistently doing something to encourage bequests, just not the most they could:

A = 10,000 donors (that meet the criteria I’ve listed above)

B = 1% successful pledge rate

C = $35,000

D = $3.5 million in future bequest income

The difference between $350,000 and $3.5 million is a big difference, no?

Two Big Lessons

There are two big lessons I’d love for your organization to take away from this.

First, the average value of bequests is really high. So you can (and should!) invest real time and money into landing legacy gifts. That can meaning hiring a Bequest Manager or a Planned Giving Officer. It can mean sending out mailings that are only about planned giving (instead of just mentioning planned giving in some other mailing or email).

Second, it’s just math. Calculate how much money your organization is projected to be receiving based on today’s numbers, and how much money you could be receiving if your organization ups its game. Then show your boss.

I did that for two “Bosses” last week, and it changed how both of them think about investing in planned giving.

It will take time to get great at identifying prospects and then landing legacy gifts. But it’s worth your time and investment!

Today’s post is the second top-level lesson we’ve found that every organization in the Mastermind needs to learn…

Your Major Donors are Remarkably Important and You aren’t Spending Enough Time or Money on Them

An organization usually knows that a small percentage of donors (your “major donors”) provide a significant percentage of your total revenue.

But an organization is usually shocked when they discover how small that number of donors is, and how large the percentage of income is.

In our experience, it’s usually around 85% of an organization’s revenue from individuals that comes from 10% of their donors.

And because the organization hasn’t sat with the numbers and really faced what they mean, the organization does not spend enough time and money on their major donors.

Here’s the example I use that helps organizations see:

Say you have a business that has 100 customers. And 10 of those customers are responsible for 90% of your revenue. You would give those customers the “white glove” treatment. They would be greeted by name at the door. They would have a special, shorter line to wait in. They would get a phone call the next day to see if their purchase worked out.

That’s common sense. But too many nonprofits don’t apply it to fundraising.

Your major donors should get the “white glove” treatment:

Hand-written thank you cards

Appeal letters written specifically to them, about what they care about

Newsletters sent in large envelopes, with a hand-signed cover letter

A call from the Executive Director after every gift

There are lots of possible treatments. You can and should be doing them.

That said…

To Keep Your Major Donors, and to Lift Them to Higher Giving, You Need a SYSTEM

Special treatment is great. Start doing it now.

But what you really need is a major donor fundraising system.

In a nutshell, here’s what your system should do:

Identify your major donors

Rank them so you know who to focus on first

Build relationships with them (with the ones who are open to this)

Make a revenue goal for each major donor

Make an annual plan to lead each major donor to reach the goa

It’s the organizations that have major donor systems in place, and then are disciplined about running the system, that see major revenue growth. They keep more of their major donors, and lift their major donors to higher and higher levels of giving.

Does Your Organization Need This?

The good thing about this is that almost every organization I’ve spoken with recently says they know they need to spend more time and money on their major donors.

Call one top donor today just to say “Thank you.” The donor you call should be one you haven’t spoken to in a while. And to make it easy, here’s a simple script for you:

“Hi [DONOR NAME], this is [YOUR NAME] from [YOUR ORG] and I’m calling just to say Thank you. Don’t worry, I’m not calling to ask for money. But we haven’t communicated 1-to-1 in a while, and I want to make sure you know how much you are appreciated. You and your generosity have done amazing things! So thank you, and are there any questions you have that I can answer, or anything you’d like to know about what your gift has accomplished?”

I’m
pretty sure you can take it from there.

But
the trick is to call at least one top donor today. It’s a small step. But a BIG
step for that donor.

And
you’ll be on the path towards a better relationship and better future
fundraising results!

If your organization doesn’t have a natural reason to fundraise during the summer, July and August are a great time of year to be Reporting back to your major donors on the impact their previous gifts are having on your beneficiaries.

Take the time this summer to visit with your major donors and Report back to them the amazing things that have happened because they gave you a gift earlier in the year.

If you are unable to meet face-to-face with them, then send them a text that includes a picture of a beneficiary they helped. Or take a short video of a beneficiary, or perhaps the building the donor helped build. Set aside time in your day to call your donors and give them a quick update.

By whatever means possible, Report back to your donors during the summer months. Why? Because now is a great time to close the loop with each of your donors and earn their trust, so that they will be ready to give another gift during the last few months of the year!

If your board is like most, they don’t like asking donors for gifts. They fear rejection. They fear the negative connotations associated with fundraising. They don’t see it as their role.

If this describes your board, then I am here to share some good news with you. There are other powerful things your board can do to help your major donor fundraising.

What Your Board CAN Do

Here’s just a short list of things we’ve had real, measurable success having board members do:

Write thank you notes. Most board members have the time to write thank you notes. Give each board member the names of the donors that need to be thanked, provide thank you notes and mailing addresses, and tell them what to say. The trick is to make it as easy as possible for them to just do it. Make it as easy as filling out a form!

Pro Tip: have them write two notes at the beginning of your next board meeting.

Call donors to thank them for their recent gift. Most board members have a phone and can find the time to call and thank donors. Same process as above: make it as easy as possible for them to do it by providing the donor’s name, last gift amount and phone number, and telling the board member what to say.

Pro tip: like writing notes, these calls can be great right at the start of a board meeting.

Invite their friends to attend an open house or a “non-ask” event. This is a relatively simple request since there isn’t an expectation for their friends to give a gift. The board member is just asking their friends for time and an opportunity to learn more about the organization they serve.

Invite friends to sit with them at your next gala fundraising event. This is the easiest way for a board member to encourage their friends to give a gift without actually asking them directly for a gift.

Write a check! It is very important that each member of your board make a significant donation to your cause every year. Hopefully they can give at a major donor level, but if not, my advice is to require each board member to give a “significant” gift – and they get to determine what “significant” means for them.

How to Help a Board Member Who is Willing to Ask

If you have a board member who is actually willing to ask donors for major gifts, congratulations! You have a rare species of board member – cherish them and thank them like crazy!

Also – help them succeed! Here are a few things you should equip them with:

A clear fundraising goal and offer. They need to know how much you are trying to raise, why the gift is needed now, and what the donor’s gift will accomplish.

An emotional story (or two) of Need. The best resource you can provide to your board members involved in fundraising are short stories that present a problem for the donor to solve. Tell your board member that if they only share stories about people who have already been helped, they will raise less money!

A deadline. We all work better, faster, and with more urgency when we know we have a deadline. This is true in fundraising too. Your board member will work with urgency if she knows she has a deadline to meet. And the same can be said for the donors she is talking to – the donors will be more likely to respond if they know there is a deadline to the request.

Response forms and reply envelopes. If your board member has fundraising success and can secure major gifts, then it is your job to make it easy for the donor to send in their gift or pledge.

Your board members should be actively involved in supporting your major donor fundraising efforts. But you and I both know that not all of them are willing to ask for gifts.

To encourage board members to help you, be sure to tell them that what you’re going to ask them to do does not always need to be asking their friends or your current major donors for a donation. But be clear that if they aren’t willing to do that, they can still help in valuable ways. And they need to!

So get them actively involved in the Thanking and Reporting portion of our ‘Ask, Thank, Report, Repeat’ fundraising system for major donors!

Note from Steven: this month Jim’s been posting helpful blogs about your major donor fundraising. This post is about matching gifts. Speaking from personal experience: follow Jim’s advice and you’ll raise a lot more money!

Everyone likes a good deal – even your donors! Think about any store that sells things you love. When they have a sale, are you more likely to pay attention and make a purchase? You bet. Getting a ‘deal’ makes all of us more likely to take action now.

It’s the same thing with nonprofit fundraising.

In fundraising, matching funds are often the ‘deal’ that makes donors take action. After all, what donor wouldn’t want to double their money & impact when they make a donation?! Matching funds are fundraising magic.

Matching funds are the easiest way to improve fundraising results – and at the same time make your donors feel great about their giving. And your easiest source of matching funds are your major donors.

Let me make the further case for why matching funds matter, and then I will tell you how to secure them from your major donors.

Matching Funds make a BIG Difference

Here are just a few reasons why securing matching funds helps you raise more money:

A 51% increase in the average donation amount (and that’s prior to receiving matching gift funds).*

Mentioning matching gifts in fundraising appeals results in a 71% increase in the response rate.**

84% of survey participants revealed they’re more likely to donate if a match was offered.‡

When a match is offered, one in three donors indicates they gave a larger gift because matching was applied to their donation.‡‡

Match-funding is the most likely factor to make donors give more. Match-funding even scored higher than emergency appeals.***

That’s fundraising magic right there! Donors are more engaged, more likely to give, and you’ll raise more money.

Note from Steven: you can use matches several times a year. Donors do not get tired of them. Do you get tired of your favorite things going on sale?

Now go secure those funds!

By now you are probably asking yourself, “How do I get a major donor to give matching funds?” As I mentioned earlier, the easiest source of matching funds are your major donors.

Review your major donor list to find a donor who either hasn’t given a major gift this year or you think has the capacity to give another large gift.

Contact the donor to ask them if they’d like the chance to multiply their gift and in turn increase the impact of their gift.

If you need to, share a couple of the stats above with the donor. Most major donors know that matching funds increase fundraising results – but they don’t have any idea how much. Be sure to tell them how big an impact their gift of matching funds will have!

When asking for matching funds (or any gift for that matter), give them a deadline to respond to you by. If your donor seems interested but doesn’t commit to giving you a matching gift, then give them a deadline that’s reasonably soon.

Follow those steps. You won’t have success every time – but you’ll have more success than you expect!

Having matching funds really is fundraising magic. It is the easiest way to increase your fundraising results, and it’s a great way to engage your major donors in your fundraising efforts.

And a more engaged major donor is a great thing for your organization!

Your special fundraising event is not too far way. You’re scrambling to put all the pieces together. You are stressed out and have no idea how you are going to accomplish all you need to do before the big day.

Have you ever felt this way? Or do you feel this way right now?!

Over the years I have personally planned special events both large and small. Most recently, I’ve consulted and advised our clients how to make the most of their fundraising events. I know how stressful it can be to plan these events. I have also learned something powerful…

Your Major Donors are So Important to Event Success

Just like most fundraising endeavors, your fundraising event will rest on the shoulders of a few people – your major donors.

If you want your event to be as successful as possible, here are a few suggestions to help your major donors help you and your cause:

Ask your major donors to underwrite or sponsor your event. After all, the goal of your event is to raise money. So why not ask your major donors BEFORE your event to help underwrite the cost? Or if they own a business, you can ask them to make a donation in exchange for business promotion (that’s what event sponsorship is).

Ask your major donors to invite 10 of their closest friends to come to the event. Most likely your major donors have friends that could be major donors to your cause. Special events are a great way to introduce their friends to your mission. And if your fundraising event does a great job motivating people in the room to make a donation, you have a high likelihood that these “new friends” will become donors.

NOTE: if a friend or invitee of a current major donor makes a gift, treat that person like a major donor even if their gift doesn’t merit that status. Think of the gift they’ve given you as a ‘test gift’ to see if they really like your organization and like the way you treat donors. Treat them like a Major and you’ve massively increased the chance that they’ll become a Major!

Ask your major donors to make a gift at the event. Do not leave their giving up to chance at the event! Before the event, ask them to make a gift at the event. This gives you the opportunity to ask for what you need, and to answer any questions your donors might have regarding the fundraising offer or how the funds will be used.

Ask your major donors to give a matching gift PRIOR to the event. There is nothing better than walking into the room the day of your event with matching funds available. Donors love knowing their gift will be matched – and their impact increased. Matching funds will increase the net fundraising results of your event.

Not every tip is right for every donor. Your job is to know each of your major donors, then to apply the right strategy for each!

Give Each Major Donor a Special Role at Your Next Event

Your current major donors want to help. After all, they are already invested in your work, and they want to see you succeed.

So give each major donor a specific role at your next event. Use at least one of the strategies above to give each major donor a special role to play. Then if you do, several fantastic things will happen:

You’ll raise more money.

You’ll know that the donors who make-or-break your event are going in primed and ready to give.

Your majors will appreciate the extra communication and the clarity around their role

You will be able to Thank them for more than just their gift.

You’ll have involved them in ways other than just giving – which increases their likelihood of giving again.

And here’s perhaps the most motivating outcome of all: you’ll be more at peace on the day of the event – and at the event – knowing that it’s going to go great!

But sometimes you can’t be as relational as you’d like! Sometimes donors are unable to meet. A large percentage of your donors won’t even be interested in meeting.

Or even speaking to you.

But there are times when you still need to ask them for a donation!

Thankfully, many of them will open mail from your organization. And that’s why mailed appeals to major donors are still so successful.

Super Simple Guide

I’ve had to do this a lot over the years, and here’s a quick list of the tips I’ve found to be most helpful:

Send the appeal in a large envelope. 9×12 should do the trick.

Hand-address the envelope and use a live stamp (no meter postage).

Send a longer letter than you would to your mass donors. 4+ pages should give you the room you need to make your case for support.

Most donors won’t read the entire letter, but they will scan it. Design the letter to be easy to read, and underline a couple of key things; specifically the reason you’re writing them today and what you hope they will do.

Personalize it with their name.

Hand-sign the letter.

Always include a customized reply card (again with the donor’s name) and reply envelope with a live stamp. Make it as easy as possible for the donor to send you a donation now!

Ask for a specific amount based on their previous giving, but also include an “open ask” in case they’d like to give less – or more! (An open ask usually looks something like, [ ] Here’s my gift of $_________.)

Big Picture Goal

Your big-picture goal here is to make the letter feel like it was put together just for the donor – not something you produced for everyone.

I know it’s not possible to ask every Major Donor in person each time. So you need to get good at using the mail to make sure they see your ask.

Hopefully, this blog post helps you think through and plan how your direct appeal should look in the mail!

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